Hiking customs duty isn't protectionism: Suresh Prabhu

He said, customs duties are a legal instrument used in global trade.NEW DELHI: Commerce and industry minister Suresh Prabhu has defended the government’s move to increase customs duty on a plethora of products and said it does not amount to protectionism. On the contrary, he said, customs duties are a legal instrument used in global trade.

“Increasing customs duty is not protectionism… It is an intervention allowed in the World Trade Organization,” the minister said. The Budget announced last week has proposed higher customs duty on goods including mobile phones, completely or semi knocked down automobile parts, electronics, capital goods, edible oils, footwear, imitation jewellery and juices.

The move is aimed at discouraging imports from China, incentivising domestic value addition and propelling the ‘Make in India’ mission.

HIGHER SUPPORT TO EXPORTSThe commerce ministry has also sought an increase in the rate of support under the interest subvention scheme for exporters to 5% from the existing 3%. Subvention rate is the interest subsidy that banks give on loans that are in turn reimbursed by the government.

​​This comes as a surprise to the industry as Rakesh was recently elevated to the position of Directo Sales and Marketing which was the third promotion for him in six years of his tenure in the company.